- Oil Prices Free Fall Amid Slowing Global Growth
Oil prices declined on Tuesday as weak global sentiment weighed on market outlook amid Saudi Arabia’s promise to meet global oil demand.
International benchmark Brent crude, against which Nigerian crude is measured, dropped $4.05 or 5.2 percent to $75.70 per barrel on Tuesday. The lowest in over a month.
U.S. West Texas Intermediate declined by $2.93 or 4.2 percent to $66.43 a barrel.
The possibility of weaker than expected economic growth has led some traders to trim their expectations for oil demand this month, especially after OPEC and International Energy Agency lowered their projections for global oil demand.
The “correlation between oil prices and broader market trading is a driving factor and the volatility in both is enough of a reason to take some money off the table,” said Tamar Essner, director of energy and utilities at Nasdaq Corporate Solutions.
Brent and WTI have both dropped more around $10 since peaking at nearly four-year high on October 3.
Also, the killing of Jamal Khashoggi by Saudi agents upped the uncertainty as calls for U.S. sanctions on the Kingdom increased following Turkish President account of the situation.
